Objective, impartial advice for Property Investors and Landlords with a focus on the Edinburgh area

Tuesday, 18 April 2017

Edinburgh landlords remember your “Consents to Let”!

For many Edinburgh homeowners, letting provides an
obvious investment opportunity as an alternative to selling. With the right
expert help from your letting agent, the matter should be quite
straightforward, although there are certain consents that should be obtained if
you are to avoid some potentially costly problems.

As with far to many things in life, the devil is in the
detail so make sure that you take into account the small print.

You will certainly need the consent of your mortgage
provider. They are unlikely to object, but you could be in breach of your
mortgage terms if you have not obtained their consent before letting your
property. They may also charge an “administration” fee. One important thing to
check is that there is no clause that increases the interest rate on your loan
should the property be used as a “commercial venture”.

Your title deeds are something else you should check to
see whether they impose any restrictive covenants of which the tenant should be
aware. For example, there may be a restriction preventing anyone keeping a
caravan on the forecourt, or storing building materials for more than a few
days.

Importantly, once consent has been obtained, you must
ensure that your tenant is aware of, and complies with, any obligations that
you yourself would observe as owner in residence.

Finally, insurance. You should obtain permission from
both your buildings and contents insurer. There is likely to be a change in
cover as the property is being let out and this may increase your premiums,
although there are insurers who specialise in this. As a minimum you should
ensure that you are covered for any third party liability in respect of
injuries to your tenant whilst at your property and I would do further and
recommend you get malicious damage and loss of rent cover.

Please let us know if you would like advise what
consents are required in your specific case to ensure your peace of mind for a
successful let.

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About This Blog

This blog follows the buy to let market in Edinburgh. You'll find tips, guidance, and analysis that relates specifically to Edinburgh and you'll also find properties from all the estate agents in the city on here that may make decent investments.

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Robert Young

I operate The Key Place and if you're thinking of buying a property to let in Edinburgh, I'll be happy to advise or just offer a second opinion. I can be contacted on news@thekeyplace.co.uk, or 0131 603 4570.